Job fears as Corus accepts takeover

Thousands of UK steel workers are seeking assurances over their jobs after the Corus group agreed to a £4.3 billion takeover by Indian rival Tata Steel.

The Corus board backed a 455p a share bid from Tata, having previously held talks with potential buyers in Brazil and Russia during a year-long search for a partner.

The proposed deal with Tata - part of the Tata Group which also owns companies such as Tetley Tea - will create the fifth largest steel company in the world and open up fresh opportunities for Corus in the rapidly expanding Asian market.

It will also transfer UK steel plants to Indian ownership less than a decade after British Steel merged with Dutch rival Hoogovens to create Corus in 1999.

Corus and Tata both refused to rule out job cuts despite calls from unions and politicians for assurances.

Corus employs 47,300 people worldwide, including 24,000 in the UK at sites including Port Talbot, Scunthorpe and Rotherham.

Tata Steel managing director B Muthuraman said: "The way I see this is that the threat to jobs is very high if this deal does not take place.

"The security of jobs and the creation of more jobs is actually better if you are more competitive, and that is what this deal does."

And Corus chief executive Philippe Varin insisted there were no short-term plans to close sites in the UK.

But Transport & General Workers Union national secretary for manufacturing John Rowse said: "The assurances on jobs look very brittle at the moment."